Types Of Negotiation And How To Ace Them
From negotiating high salaries to negotiating sales contracts, the business world offers many negotiating opportunities. Learning about types of negotiations can help you improve your negotiation skills and gain a better understanding of how it works.
In this blog, we’ll discuss:
What is negotiation
The types of negotiations
Tips to master the negotiation
What is Negotiation?
Negotiation is a strategic process by which two or more individuals, teams or groups try to reach an agreement by resolving conflicts or issues/discussions.
The main motive behind the negotiation process is to get to a mutual agreement by resolving a problem or by addressing an issue. Having good negotiation skills is a great asset as it can contribute to business accomplishments and help you build better relationships.
Here are a few examples of business negotiations:
Wage negotiations: Job seekers negotiate salary and benefits with a potential future employer.
Merchant Negotiations: Businesses negotiate prices and services mentioned in the contracts by the sellers.
Conflict resolution: Generally, conflict resolution at work involves negotiation between two or more parties that may lead to an agreement.
What are the types of Negotiations?
In business, there are different types of negotiation, each with different approaches to succeed.
Some of the most common types of negotiations are:
Distributive
Integrative
Multiparty
Team
1. Distributive Negotiation:
In distribution negotiations, the parties compete for the distribution of a fixed amount of value. Here, any gain for one group represents the loss of another. You may also hear these so-called zero-sum negotiations or win-lose.
Let us take an example of buying a car, this involves two different parties, a buyer and a sellar. In this case, both parties have different interests, the seller wants to make as much money as possible while the buyer seeks to pay the least amount of money as possible. The relationship aspect of the negotiation is not important as there is no future scope of business. Both the parties discuss hard until the deal is agreed upon. At the end of the negotiation, either the salesperson or the customer receives the better end of the bargain.
Below is a list of suggestions to ace distributive negotiations:
Persevere: If you take the initiative to negotiate, persistence and respectful assertions can help you achieve your goals.
Make the first contribution: In broader discussions, you can make an initial commitment to start a negotiation in your favour.
Do not talk about your small positive effect: It is important to focus on distribution negotiations to ensure successful negotiations. You can withhold any information at a minimum that you are willing to accept in exchange for the best results.
2. Integrative Negotiation:
Integrated negotiation, sometimes called win-win negotiation or collective bargaining, is a form of negotiation in which the negotiating parties try to reach a mutually beneficial solution. This negotiation is a careful examination of both your position and your opposite number, to get an equally acceptable result that gives both of you as much of what you want as possible.
For example, a shopowner wants to sell his shop for $500,000; however, the shop needs a new coat of paint. After buying negotiations, the prospective shop buyer may offer only $490,000 and agree to pay for the painting once the purchasing process is complete.
Therefore here, the seller benefits from the negotiation as they were able to sell the shop at market value without spending any additional money on painting. The buyer also benefits since they purchased the shop at a lower price while being afforded the opportunity to save money by painting the shop themselves.
Here are a few tips you can use for integrated negotiation :
Take the path with principles: You can discuss your values during a participatory discussion to build trust with the other team.
Talk openly about your needs and interests: Communicating your goals in integrated discussions can encourage openness and provide positive relationships.
Use negotiation to solve problems: In joint negotiations, both parties can use the negotiations as an opportunity to resolve the issues together.
3. Team negotiations
In team negotiations, most people agree on an agreement on each side of the negotiations. Team negotiations are common with large business agreements. There are several personal roles in the discussion team. In most cases, one person may perform many roles.
Here are some typical roles in discussion teams:
Leader: The members of each team in the negotiations usually appoint a leader who will make the final decisions during the discussions.
Viewer: The observer pays attention to the other team's team during the negotiations, discussing what they saw with the leader.
Next: The next in the discussion group works to build relationships with the members of the other group during the discussion.
Recorder: The recorder in the discussion group can take notes in the discussions of the workshop.
Criticism: While this may sound like a negative role, having a critic on the team during the discussion can help you make sure you understand the approval and other negative consequences of the agreement.
Builder: A builder in a discussion group creates an agreement or package for a discussion group. They can perform financial transactions during negotiations and calculate contract costs.
4. Multi-party Negotiations:
Multi-party negotiations are a form of negotiation in which more than two parties negotiate in order to reach an agreement.
An example of multi-party negotiations is a dialogue between many departmental leaders in a large company.
Here are a few challenges for multiple group discussions and how to avoid them:
Flexible BATNAs: BATNA represents one of the best alternatives to the negotiated agreement. With so many parties in the negotiations, the BATNA of each party is likely to change, making it difficult for the parties to agree. Each party can test its BATNA at each stage of the negotiations to understand the outcome of the proposed agreement.
Coalition formation: Another challenge for multi-party negotiations is that it is possible for different parties to form co-operatives. These agreements can add to the complexity of the negotiations. Co-operatives can agree on a set of specific terms to help all parties reach an agreement.
Management problems: Managing the process of multilateral communication can lead to a lack of governance and poor communication. People in multi-party negotiations can avoid these problems by choosing a leader who is willing to work with others to reach an agreement.
CONCLUSION
As we continue to learn, we can improve our personal and professional relationships and skills. By knowing how to use the negotiation process.
Success in negotiations starts with understanding what kind of conversation you are facing. Basically, all discussions are about acquiring and distributing value. This article has helped you to understand how to think about both the value and the way we distribute it in new ways.
Your goal as a negotiator is to start by asking the right questions to understand what each side is most important about and to see what resources on the table can be distributed in ways that lead to success. deal.